Barely a week after the Federal Government announced that electricity consumers would no longer pay for prepaid meters, electricity distribution companies (DisCos) are pushing back, warning that the directive raises serious funding and regulatory concerns.
The Minister of Power, Adebayo Adelabu, had last week directed DisCos to begin free installation of prepaid meters nationwide, declaring that no Nigerian should pay for a meter going forward. The announcement was made during an inspection of newly imported meters in Lagos, where the minister warned operators and installers against extortion and described the move as part of efforts to end estimated billing.
But reactions emerging since then suggest the policy may face hurdles in implementation.
Details shared on social media platform X on Monday indicate that DisCos, under the Association of Nigerian Electricity Distributors (ANED), have rejected the directive, arguing that the cost implications were not clearly addressed.
“One cannot simply declare meters free without clearly stating who pays for them,” a DisCo official was quoted as saying. “DisCos are private businesses, not government agencies.”
According to the operators, while consumers may not be charged directly, the procurement, logistics and installation of meters still come at a cost that must be borne by someone. They argue that the minister’s announcement did not outline a funding mechanism or indicate whether government would take responsibility for financing the rollout.
DisCos also raised concerns about meter installers, who largely operate as independent contractors. They questioned how installers would be compensated if customers are barred from making payments, noting that the directive failed to address this critical aspect of the metering process.
Some operators warned that the policy could disrupt existing metering arrangements approved by the Nigerian Electricity Regulatory Commission (NERC), particularly the Meter Asset Provider (MAP) scheme, under which customers pay upfront for meters and recover the cost over time.
“There is already an approved structure for metering under NERC,” another source familiar with the matter said. “You can’t just wake up and cancel it without stakeholder engagement.”
While the free meter directive has been welcomed by many consumers frustrated by estimated billing, the resistance from DisCos highlights the familiar tension between government policy announcements and the commercial realities of Nigeria’s power sector.
Industry watchers say clearer guidance from both the Ministry of Power and NERC will be crucial in determining whether the policy delivers meters to homes or becomes another reform stalled by unresolved funding and regulatory issues.